Which of the following is true of raw materials?

Question

Quizplus · Accepted Answer

Raw materials are typically products or inputs purchased by businesses for the creation of other goods or services. These raw materials often have a large number of relatively small sellers, as there may be many small-scale producers of a particular raw material rather than a single dominant supplier. For example, there may be many individual farmers who grow corn rather than a single large corporation that dominates the market.

Option B is incorrect because raw materials may not necessarily require promotion through mass advertising. It depends on the nature of the raw material and the industry it is being used in.

Option C is incorrect because capital goods such as machinery are not generally considered to be raw materials.

Option D is incorrect because raw materials may have a relatively short life if they are perishable, but this is not always the case. Additionally, raw materials may be more or less expensive than supplies depending on the specific item and market conditions.

Which of the Following Is True of Raw Materials